April 10th, 2008

A Federal Appeals Court ruled this week that the settlement handed down in a District Court regarding an insurance company’s asbestos cases was not valid. The Federal Court said the District Court did not have jurisdiction over the settlement.

A Minnesota based insurance company is now scrambling to figure out how they are going to pay for asbestos lawsuits after a previous settlement agreement was overturned this week. The U.S. Court of Appeals overturned the settlement decided by the U.S. District Court in the Southern District of New York, stating that the District Court did not have jurisdiction to hand down the settlement. Though the company is now trying to plan its next course of action, the company does not plan to change any accounts for paying out asbestos-related lawsuits.

The insurance company was being held responsible for paying millions of dollars to people suffering from asbestos-related diseases. Victims of asbestos exposure can develop respiratory illnesses like emphysema or types of cancer like mesothelioma. A type of aggressive lung cancer, mesothelioma can take years to diagnose, and is often too advanced for treatment for the victim. Asbestos lawsuits are hard on victims, since settling the suits can take years, and mesothelioma victims normally count their remaining time in months.